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Full results to the LendingOne-ResiClub SFR Investor Survey
50% of single-family landlords say home insurance was their expense that increased the most over the past 12 months.
Lance Lambert
August 06, 2024
ResiClub teamed up with LendingOne, one of the fastest-growing private real estate lenders in the country, to run a survey of single-family rental investors.
Investors who own at least one single-family investment property were eligible to respond to the LendingOne-ResiClub SFR Investor Survey, fielded between June 25 and July 18. In total, 235 single-family landlords completed the survey.
Our topline findings:
60% of single-family landlords say they’ll likely buy at least one investment property over the next 12 months.
39% of single-family landlords say they’ll likely sell at least one investment property over the next 12 months.
76% of single-family landlords expect to raise their rents over the next 12 months—including 35% who say the increase will be over 4.0%.
2% of single-family landlords expect to decrease their rents over the next 12 months.
72% of single-family landlords expect home prices to increase in their core housing market over the next 12 months. But only 31% expect an increase of over 4.0%.
86% of single-family landlords expect interest rates to fall over the next 12 months. However, just 10% of those landlords expect a decline of more than 1 percentage point.
50% of single-family landlords say home insurance was their expense that increased the most over the past 12 months.
Big picture: The survey reveals that most single-family landlords aren’t super bullish or bearish; instead, they are cautiously optimistic, expecting a balanced single-family rental market over the next 12 months. Many plan to buy properties, raise rents, and anticipate rising home prices and falling interest rates. However, they only expect a mild increase in rents and home prices, as well as just a slight drop in interest rates. Home insurance costs, which rose over 10.0% in 25 states last year, remains an area of concern.
"The survey result generally aligns with what we have heard and thought over the last 12 months and how we see this shaking out," says LendingOne CEO Matthew Neisser. "We saw apartment rents starting to stall months ago; apartment rents were already leveling out in most markets and becoming more competitive with concessions. So, on the single-family side, it's a function of affordability. And people can afford only so much at certain price points. So it seemed obvious there's only so much more to run on rents, within reason."
Below, you can find the full survey results.
“Inventory reached unprecedented lows during and after the COVID-19 pandemic, making it challenging for investors to acquire properties and expand their portfolios due to fierce buyer competition. However, as the market stabilizes, we anticipate increased buying opportunities for our clients. It's important to note that significant rent appreciation is less likely in the current climate. Investors should base their purchasing decisions on realistic expectations," says LendingOne CEO Matthew Neisser.
Neisser added that if investors are right, and interest rates come down a bit, even better.
“All else being equal, rates coming down is great for our investors, period” Neisser says.
ResiClub PRO members got an in-depth inventory analysis for +800 metros and +3,000 counties yesterday. That article included 7 interactive charts/maps (including the one below), and updated access to the Lance Lambert Inventory Tracker.
Some pockets of the country are shifting in buyers favor, including pockets of Florida like Pinellas County (Clearwater and St. Petersburg), where active inventory for sale in July 2024 was 33% higher than in July 2019.
ResiClub PRO members (paid tier) got three additional research articles over the past week:
